The Mercedes-Benz Group ($MBG (-1,31 %)) is under pressure! 😬 The fat years seem to be over as the car manufacturer struggles with a slump in profits and a noticeable decline in sales. The business figures for 2024 will be published on Thursday - the tension is rising!
A big reason for the misery? China. Sales there have fallen by a whopping seven percent, especially in the premium segment. Analyst Frank Biller from LBBW notes: "The growth engine China has lost a lot of momentum." High-priced models such as the S-Class and Mercedes-Maybach were particularly disappointing with a decline of 14 percent.
The real estate crisis in China has mainly affected wealthy buyers. The market is also highly competitive due to local brands. What do you think? Can Mercedes hold its own in this highly competitive market? Or is it time for a change of strategy? 📉💭
